Article Highlights

Fed official Lacker: At risk of “getting behind the curve” if rates aren’t hiked faster

U.S. Treasury Secretary Mnuchin: Excessively strong USD may be negative in short term

Mnuchin: Gov’t will address issue of Chinese FX manipulation

Partner CenterFind a Broker

No data? No problem! Major pairs were still able to enjoy a bit of action during the New York session but unfortunately for the dollar, Treasury Secretary Mnuchin was a downer.

Major Events:

Treasury Secretary nominee’s remarks – Trump’s pick for Treasury Secretary is former Goldman Sachs banker Steven Mnuchin whose appointment is awaiting the confirmation vote by the Senate. Even though he hasn’t officially taken office yet, his comments already had a strong impact on the dollar as he said that an excessively strong currency may be negative in the short term.

Mnuchin also mentioned that they plan on addressing the issue of Chinese FX manipulation, asserting that this is an unfair practice and that they plan on working with the IMF, G7, and G20 on currency issues. “I will ensure that we defend American jobs by combating currency devaluation through legislative processes established by Congress,” he said, staying in tune with Trump’s “America First” theme during his inaugural address.

Trump also reiterated his plans to implement tax reform and bring jobs back to America while imposing a “very major border tax.” He also announced that he would reinstated the Mexico City rule banning U.S. funds from supporting overseas abortion. In response, Mexican President Enrique Nieto said that they will be “obliged to take steps to defend their interests given the new vision in the U.S.” Press Secretary Spicer himself hinted that there are likely to be more moves like this that would spur volatility in the markets in the coming days. Yikes.

Major Market Movers:

USD – The Greenback struggled to get back on its feet but its knees eventually buckled when Trump reiterated his protectionist plans and Mnuchin warned against excessive USD strength.

EUR/USD edged up from a low of 1.0705 to a high of 1.0773, GBP/USD continued to advance from 1.2462 to 1.2545, USD/JPY tumbled from the 114.00 handle to a low of 112.53, and AUD/USD rose from .7558 to test the .7600 mark.

Every day, I will present to you my findings and daily commentaries on what recently happened in the economic arena, possible shifts in sentiment, economic events to watch out for, and their effects on currencies.

We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.